As part of its ongoing debt-reduction programme, Telefonica wants to take advantage of a return of investor confidence to refinance €5 billion of debt, according to Expansion.

In particular, the operator wants to change the terms of the loan that financed the purchase of Brazilian operator Vivo in 2010.

More recently, however, Telefonica has imposed self-restraint with a series of asset sales in 2013 designed to raise some cash and maintain a focus on core markets.

At the end of last year, it agreed the sale of a controlling stake in Telefonica Czech Republic which followed deals to sell down interests in Ireland, Central America and Germany.

Its stated aim was to push net debt down below €47 billion by the end of 2013. Now the company is looking to capitalise on renewed investor enthusiasm by improving and lengthening the terms of outstanding loans.

Of the €5 billion total, €3 billion is a syndicated loan the company hopes to refinance via negotiations with a large group of banks, according to sources. The €3 billion loan is maturing next year. A further €2 billion relates to the amortisation of debt.